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Country News - 2001

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NFU's cool response to budget statement
Wed 28 November

APART from welcoming possible cuts in transport fuel costs, the National Farmers' Union gave a cool response today to Chancellor Gordon Brown's autumn budget statement.

There is little in pre-Budget announcement that offers any specific help to Britain's desperate farmers, said NFU President Ben Gill, who farms at Easingwold, near York.

A consultation on a 4p cut for motorists and 8p for hauliers in petrol and diesel duty ahead of the Budget looked to be one of the most positive measures. A consultation on the modernisation of the road haulage industry taxation system was also long overdue.

Mr Gill said: "Any measures that reduce haulage costs have to be supported. Because farmers and the food industry are in remote areas, they cannot rely on centralised transport systems and are heavily dependent on road haulage."

On the £2.7 billion bill for foot and mouth, Mr Gill said that it has cost farmers at least an additional £1 billion on top of the compensation received.

He said: "We regret as much as anyone that this sum of money has had to be paid. But despite this large public bill, farmers themselves have made disastrous losses as a result of foot and mouth.

"Their compensation has only covered the loss of their livestock, not the immense financial burden caused by the lack of markets, extra costs, movement restrictions and consequential losses like the inability to produce milk or meat.

"It must also be remembered that the root cause of the problem was a lack of resources to keep the disease out by preventing illegal imports of food and also inadequate investment in animal disease research.

"If the proper contingency plans had been in place at the outset, the bill to the public and the pain and cost to farmers and the rural economy would have been considerably lower."

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